OREANDA-NEWS. Fitch Ratings assigns ratings and Rating Outlooks to J.P. Morgan Chase Commercial Mortgage Securities Trust 2016-ATRM commercial mortgage pass-through certificates series 2016-ATRM as follows:

--$191,600,000 class A 'AAAsf'; Outlook Stable;
--$67,400,000 class B 'AA-sf'; Outlook Stable;
--$35,000,000 class C 'A-sf'; Outlook Stable;
--$53,000,000 class D 'BBB-sf'; Outlook Stable;
--$98,000,000 class E 'BB-sf'; Outlook Stable;
--$81,700,000 class F 'B-sf'; Outlook Stable.

Since Fitch published its expected ratings on Jan. 19, 2016, the issuer removed the $347,000,000 class X-CP and the $347,000,000 class X-NCP. As such, Fitch withdrew its expected ratings of 'BBB-sf' for each class. Fitch does not rate the $58,300,000 class G.

The certificates represent the beneficial interest in a trust that holds a five-year, fixed rate, interest-only $585 million mortgage loan secured by the fee and leasehold interests in 30 hotel properties with a total of 7,236 rooms located in 16 states. The sponsor of the loan is Atrium Holding Company. The loan was originated by JPMorgan Chase Bank, National Association (rated 'A+'/'F1'/Stable Outlook).

KEY RATING DRIVERS

Diverse Portfolio: The portfolio exhibits geographic diversity, with 30 properties located across 16 states; no state represents more than 15.2% of portfolio cash flow. The top 10 properties account for approximately 54% of the portfolio cash flow and 39% of the total keys.

Asset Quality and Age: The 30 properties comprising the portfolio have an average age of 23.5 years (built from 1979-2000) which is considered an older vintage. The portfolio's assets are well maintained, with $258.9 million ($35,785 per key) of capital improvements spent from 2005 through November 2015. In addition, $125.2 million ($17,300 per key) in capital improvements are budgeted through 2020.

High Trust Leverage: Fitch's stressed debt service coverage ratio (DSCR) and loan-to-value (LTV) ratios for the trust component of the debt are 1.04x and 103%, respectively.

National Franchise Flags: Twenty nine of the 30 hotels are franchised with Hilton, Marriott, Intercontinental Hotel Group (IHG), Carlson Rezidor, and Starwood and benefit from their respective loyalty point and reservations systems. The Embassy Suites by Hilton represents the largest brand, with 34.5% of the portfolio's total keys and 47.1% of the portfolio's trailing 12 months (TTM) November 2015 net cash flow (NCF). The remaining brands include Marriott, Renaissance, Holiday Inn, Hilton, Sheraton, Homewood Suites, Hampton Inn & Suites, Crowne Plaza, Radisson and one independently operated hotel.

RATING SENSITIVITIES

Fitch found that the 'AAAsf' class could withstand an approximate 72.5% decrease to the most recent actual NCF prior to experiencing $1 of loss to the 'AAAsf' rated class. Fitch performed several stress scenarios in which the Fitch NCF was stressed. Fitch determined that a 68% reduction in Fitch's implied NCF would cause the notes to break even at a 1.0x DSCR, based on the actual debt service.

Fitch evaluated the sensitivity of the ratings for class A and found that a 15% decline in Fitch's implied NCF would result in a one-category downgrade, while a 45% decline would result in a downgrade to below investment grade.

The Rating Sensitivity section in the presale report includes a detailed explanation of additional stresses and sensitivities. Key Rating Drivers and Rating Sensitivities are further described in the accompanying presale report. The presale report is available to all investors on Fitch's web site 'www.fitchratings.com'.

DUE DILIGENCE USAGE
Fitch was provided with third-party due diligence information from Ernst and Young, LLP. The third-party due diligence information was provided on ABS Due Diligence Form-15E and focused on a comparison and re-computation of certain characteristics with respect to the mortgage loan and related mortgaged properties in the data file. Fitch considered this information in its analysis, and the findings did not have an impact on our analysis.